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PLM Project Justification Handbook

The Question

You may be able to quantify exactly how much it is costing your company to implement PLM, but can you demonstrate the real financial benefits that it provides?

The PLM Team can now prove to everybody, with clear, quantified metrics, that the PLM implementation is of real benefit to the company.

The PLMIG Project Justification Methodology enables you to put a clear financial value on the net improvement that PLM is making to your business.

This is exactly what you need for your new project proposals - a set of quantified financial benefits that make a watertight case for approval.

 

The Handbook

The PLM Project Justification Handbook contains a standard, neutral methodology to quantify the costs, benefits and commercial value of implementing PLM.

 

 
Project Justification Handbook
 

The Handbook is designed to be as easy to understand and use as possible. Its methodology is practical and straightforward. It is ideal for use when the priority is immediate financial justification of PLM.

 

The Handbook and its supporting toolset enable PLM Managers to prove that PLM is worth doing from a purely financial viewpoint.  It enables the PLM Team to quantify anything that PLM can achieve for a business, and build those metrics into PLM proposals.

 

 

 

The PLM Project Justification Handbook enables the PLM Team to produce properly costed proposals for new PLM projects, that can be assessed for demonstrable success after they have been implemented.

See the Handbook Table of Contents >>>

 

Background

The Handbook was developed from an international series of workshops as part of the PLM Financial Framework initiative.

 

Need for Metrics

The methodology takes as its starting point the need to produce quantified PLM benefits, because:-

  • the Board or senior management have identified a need for improvement;
  • the PLM Manager, or PLM Team, believe that there are improvements that could be made; or,
  • circumstances dictate that improvements should be made.
This means that there needs to be company-wide understanding of the possibilities for PLM, and top management approval for a proposed course of action.

 

Methodology

The methodology is structured around four Stages:-

  • Stage 1: Scoping
  • Stage 2: Definition
  • Stage 3: Calculation and Proposal
  • Stage 4: Monitoring and Reporting

 

Document Templates

The driver for progress through the Stages is that a set of specific documents must be produced that will help achieve this understanding and approval:-

  Company PLM Overview - defines the 'As-Is' situation
  PLM Discussion Document - suggests the improvements that could be made
  PLM Contact Summary - one or more documents that capture the liaison with vendors and advisors
  PLM Proposal - sets out the improvement projects to be undertaken
  Capital/Project Expenditure
Request
-

in the company's standard format, that requests and enables funding to be approved

Template documents for the first three of the above are provided as part of the toolset.

 

Instruction Documents

Also provided are the following PLMIG instruction documents:-

  PLM Financial Primer - essential reading: explains the high-level principles to everyone in the company
  CEO Briefing Document - explains PLM to senior managers who are unfamiliar with the concept
  Path to PLM - the PLMIG methodology, that acts as a cross-reference for project planning

 

Details

The full PLM Project Justification toolset can be purchased directly from the Store.

Alternatively, the Toolset is part of the full set of PLMIG material provided by PLMIG Membership.

All documents are supplied in Word format so that users are able to modify and adapt them as desired, as specified in the Terms and Conditions.


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